RELX Valuation

Is R1EL34 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of R1EL34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: R1EL34 (R$68.88) is trading above our estimate of fair value (R$51.49)

Significantly Below Fair Value: R1EL34 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for R1EL34?

Key metric: As R1EL34 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for R1EL34. This is calculated by dividing R1EL34's market cap by their current earnings.
What is R1EL34's PE Ratio?
PE Ratio36.5x
EarningsUK£1.89b
Market CapUK£69.08b

Price to Earnings Ratio vs Peers

How does R1EL34's PE Ratio compare to its peers?

The above table shows the PE ratio for R1EL34 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.5x
TRI Thomson Reuters
32.4x-1.2%CA$100.9b
EXPN Experian
36.7x12.7%UK£34.5b
WKL Wolters Kluwer
36.1x7.2%€37.4b
VRSK Verisk Analytics
44.7x7.9%US$41.2b
36.5x8.1%R$69.1b

Price-To-Earnings vs Peers: R1EL34 is good value based on its Price-To-Earnings Ratio (36.5x) compared to the peer average (37.5x).


Price to Earnings Ratio vs Industry

How does R1EL34's PE Ratio compare vs other companies in the Global Professional Services Industry?

19 CompaniesPrice / EarningsEstimated GrowthMarket Cap
R1EL34 36.5xIndustry Avg. 20.1xNo. of Companies71PE01632486480+
19 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: R1EL34 is expensive based on its Price-To-Earnings Ratio (36.5x) compared to the Global Professional Services industry average (20.7x).


Price to Earnings Ratio vs Fair Ratio

What is R1EL34's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

R1EL34 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate R1EL34's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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